Alkem Labs IPO - Huge gains on listing

Dear Reader,

We recommended "subscribe" to Alkem labs IPO to our members due to robust business and positive financials.Detailed report was sent to all eligible members. It has already given 30% + returns on listing day. Please drop a mail in case you want to know future prospects of the company and holding it for long term or not.

Mail me at    Ankurjainraj@gmail.com

New 52 week high for several stocks

Dear Reader,

In spite of markets at year lows several stocks suggested by us have hit new 52 week highs. These high quality stocks will continue to deliver excellent returns to their investors.Markets have reached bottom and are poised to rise from these levels.Investing at these levels seems to be smart step and will be highly rewarding in future.

To get such ideas please mail me at:

ankurjainraj@gmail.com

Qualities in a successful investor

You must be wondering why give any importance to personal characteristics when you ultimately just need to pick a good stock and profits will shower upon you soon.Well, there are some important traits that you must have in order to be successful investor:

1) Patience

The most important quality one should have is to have lot of patience. Yes 1000 litres of patience or more(just kidding) .Sometimes high potential stock will do nothing for months and sometimes nothing for a year or so.Yes!! Absolutely nothing for a year!! 0% returns in an year :) .Many people sell their holdings if a stock does not give them any return in a month then who would wait for an year to keep the stock that has given them 0% returns?. I am sure 95% of investors will sell within an year since they are frustrated with no returns.

What needs to be done - Sometimes stock is not researched by many people and hence remains undervalued for many months. If the company has greater value than what is being reflected in its current stock price then believe me , someday stock will rise to its true price. So the most important thing is to identify fair value of a stock and very soon the stock will reach to your desired level.

2) Bear the pain

Whenever the stock goes down from their buy price people start to panic and they make emotional decision regarding their holdings. They will sell all or buy at lower levels to average their holdings. But this is not the right thing to do. One should again analyse and determine fair value of the company and then arrive at a conclusion and based on that they should take their decisions.

3) Be focused

"The men who have succeeded are men who have chosen one line and stuck to it." -- Andrew Carnegie
Successful investors are focused on their investment vehicle. They take it one step at a time; one investment at a time. If you are a long term investor stay like that and don’t trade much.

4) Successful investors use trend to their advantage

"Your greatest and most powerful business survival strategy is going to be the speed at which you handle the speed of change. That speed of change is trend." -- Ajaero Tony Martins

Successful investors use trends such as market sentiments, political instability and company's crisis to their advantage. Average investors panic over market fluctuations but professional investors welcome these fluctuations because they can use these fluctuations to their advantage.

5) Successful investors are passionate about investing

If you take a look at average investors, they are always after how much they are going to make now but successful investors use delayed gratification and compounding to gain an edge.
"Wealth is only a benefit of the game of money. If you win, the money will be there." -- J. Paul Getty

6) Be persistent and don’t keep looking for next hot tip

"When everything seems to be going against you, remember that the airplane takes off against the wind, not with it." -- Henry Ford
Sticking to your investing strategy whether you are winning or losing requires a great deal of persistence. Average investors lack persistence and that's why they will forever remain average. They jump from one strategy to another and are always looking for the next hot tip.

"Most people give up just when they are about to achieve success. They quit on one yard line. They give up the at last minute of the game one foot from a winning touch down." -- Henry Ross Perot

Stock Ideas - Performance Sheet

Dear Reader,

Wishing you HAPPY DIWALI.

May the millions of lamps illuminate your life with endless JOY, LOVE, PROSPERITY, HEALTH, WEALTH AND HAPPINESS.

Here is the last 6 months performance of our stock ideas:

Nifty has given -9 % returns during this period and top performing mutual fund has given 3.4% returns in last 6 months.

Stock Name	Recommended on	Price as on Recommended date	Highest CMP as on Oct 26, 2015	Returns %	Nifty has given -9 % returns during this period and top performing mutual fund has given 3.4% returns in last 6 months
***M***	April-15	623	1720	176.08%
*****es***	April-15	765	895	16.99%
***c***	May-15	944	1567	66%
**i**	May-15	2293	3250	41.74%
S****L**	July-15	1208	1380	14.24%
F****S	August-15	2700	3785	40.29%

High quality and well researched stock recommendations ( 8-12 recommendations per year) based on following parameters:

1) Economy of scale

2) Competitive Moat

3) New Sector opportunity

4) Relatively Low PE

5) High Revenue Growth

6) High margin than peers

7) Incremental profit growth

8) Honest and Visionary management

9) High ROE and ROCE

10) High Dividend Yield

We work very hard to find quality companies for you.We know that it is your hard earned money so we try to find right set of companies that can give you high returns on your investment.

For such ideas please drop a mail to:

ankurjainraj@gmail.com

Love to invest in small cap companies? Read this before you invest!!

Every investor looks for a company that can become multibagger  in coming years.So investor starts searching for those very small companies that can become big like Infosys / HDFC bank.

But is this so easy?

There are people who will invest in companies having market cap less than 100 crores and hope that luck goes in their favor!!. Believe me,Investing in micro cap companies is the biggest risk one is taking with his/her hard earned money.A small company can have fluctuating earnings and profit growth.Competitors can finish them and are vulnerable to government policy changes. Moreover in some cases they are used as a tool by fraudsters to cheat small investors as they can be easily lured for big returns in future.

Consider an example of Bartronics.It used to make bar codes and there was nothing special in their business that would have made them command  30% plus EDITDA margins !! .It was just bar codes they were selling.

Promotor shareholding kept on decreasing year on year from 49% to 12 %.Also,If their balance sheet is analysed properly the money which they needed to collect from debtors was more than the total sales shown.Share price soon followed the fundamentals and dropped to 8 Rs from 320 Rs

Another company that cheated its investors was Dr Datson labs 

A few months  ago,two national exchanges were suspending the shares of Dr Datson's Lab, a little known pharma company, on 22nd May. The company’s promoters had pledged their entire shareholding which was invoked by the lenders leaving it orphaned. Other lenders had moved court and the official liquidator had taken possession of the company and its registered office on 30 April 2015

In fact, Dr Datson’s Labs seems to have been just a large money laundering operation. And, yet, like the dubious Satyam Computers, it won a series of awards for corporate governance, innovation, transformation and leadership all the way until its eventual collapse in 2015. Here again promotor shareholding kept on decreasing year after year.Why would a promotor who knows most about his  business will sell shares to someone else? Of course it will be done by those promoters  who know that there is no future of their company. Dr Datsun labs changed its name multiple times during the course of its existence.Share price too dropped from 218 Rs to 2 Rs and later suspended.

It makes sense to do proper research on balance sheet and management credentials before investing in such companies. Lots of listed Indian companies are just fooling their investors as there is no way they can make money for their shareholders.

For any queries please contact at:

Ankurjainraj@gmail.com

How to identify Multibaggers ?

Dear Reader,

Successful Equity investing requires one to identify companies that have potential to become future global brands. If you can identify even one such company then it can make you not just rich but very rich!!

Below is the diagram that shows possible traits of such a company:

Score 70 -80 : very high chances of becoming multibagger.

Score 50-70 : average chances of becoming multibagger.

Score 50-60 : very less chances.

50 and below: cannot be multibagger.

So I suggest you to make a balanced portfolio that comprises of high quality companies that have excellent and profitable business model  and run by excellent management. 

For such ideas please mail me at : ankurjainraj@gmail.com

New stock idea released – A potential multibagger

New stock idea released – A potential multibagger

We have released our latest stock idea which is the leader in the sector in which it operates. Company is worth investing due to following reasons:

1)      Strong quarterly results (50% increase in profit)

2)      Lower interest rates

3)      Revival of economy will lead to increase in demand of its products  (  Although company was doing very well when economic growth was on decline)

4)      Reasonable valuations

5)      Strong management

With strong tailwinds like economic revival helping the company and strong management  the stock is set to reap profits to its shareholders.

To know about this stock please mail me at: ankurjainraj@gmail.com